Changing job before applying for first mortgage?

tain

I'm looking to get my first mortgage around this time next year. By then I should have a LTV deposit of roughly 15-20% (looking at ~£180k property).

My main question is that I'm considering applying for jobs later on this year (need to finish a qualification first so can't be sooner), which could get me anything from £5-15k more a year.

Would it bode much better for me to have the new job, but have only been in it for a short time, compared to sticking with my current job that pays less?

Just to complicate things a little - I had a fair number of defaults about 3 years ago, so my credit used to be awful. I've made all the necessary changes to rectify this since, but they'll still be showing on my credit file at the time of applying. Not sure if having a better paid job, or being in my current job for almost 4 years would be seen as better by the lender? I have no debts to my name since my last default.

HouseBuyer77

When I applied for my mortgage I had just switched jobs (having been made redundant from the previous one) and had only just got my first pay cheque. This didn't seem to bother the lender at all.

I don't have a probationary period with my job (which is permanent) which I did mention to the lender but they didn't ask in the first place and didn't really seem to to care.

However I do have good credit.

Maybe you should just ask an advisor at the lender you're looking at going to? They won't be able to give you a definite answer but they can probably advise on what would make you more likely to be accepted.

pinkteapot

Some lenders will care. HSBC won't lend if you're in a probation period. If you've already got your eye on some lenders, phone them and ask what their policy is.

tain

I was thinking about speaking to a lender. But because of my credit history, I'd need to speak to a broker to get the best advice from all the market. I've spoken to a broker before, and they tell me they can't give adequate advice unless they've done a credit check to see exactly what they're looking at. I don't want to do a credit check this early (or waste a brokers time) as I'm not even considering applying for a mortgage in principle for another year, and a credit check is negative on my credit file.

Which, as you can see, leaves me in a bit of a bind. As most probation periods are 6 months, I need to know if I'm making the right move long before I'm considering applying for a mortgage in principle. And I really don't want to do a credit check until I know I'm getting a mortgage in principle, as I need to give myself (and my credit file) every possible chance of success...

movilogo

If you have defaulted, that's may be more troublesome than being in a probationary period.

You won't really know until you apply. Sometimes experienced mortgage brokers can advise on which lenders you have better chance of success.

If you can supply at least 3 months payslips then most lenders won't even ask if you are in probationary period or not. Some lenders then may ask a letter from employer.

There is no single rule - all lenders have their own criteria.

tain

movilogo wrote: »

If you have defaulted, that's may be more troublesome than being in a probationary period.

You won't really know until you apply. Sometimes experienced mortgage brokers can advise on which lenders you have better chance of success.

If you can supply at least 3 months payslips then most lenders won't even ask if you are in probationary period or not. Some lenders then may ask a letter from employer.

There is no single rule - all lenders have their own criteria.

We spoke to a financial advisor a year ago, who recommended a few. But one of them was Halifax, who I've had defaults with, so that writes them off. I can't remember who the other people were.

He basically said I should be fine with my defaults as long as my LTV was at the very least over 15%, and over 20% to start opening up the market. But I weren't sure if new job + defaults starts compounding the problem with lenders. IE defaults are ok at 20% LTV, but they'd start refusing if I'm in a new job on top of them defaults.

kingstreet

Obtain all three versions of your credit file and put them in front of a good independent broker. Each one will contain different data as lenders take information from and supply information to, different CRAs.

Your credit files tell us a lot more than a credit search done by a lender which can't be anything but speculative and hopeful.

Herbalus

What kingstreet said.

In addition, don't be too worried about credit checks when it comes to applying. They lose importance over time, and your credit file is there to be used. I didn't think I'd be offered my mortgage, so was tempted to not apply to save my credit file, but then I realised it's better to do the search and be rejected than not do the search and not buy the house. After all, if I'm not buying a house what difference does it make if my file will allow it or not?

tain

kingstreet wrote: »

Obtain all three versions of your credit file and put them in front of a good independent broker. Each one will contain different data as lenders take information from and supply information to, different CRAs.

Your credit files tell us a lot more than a credit search done by a lender which can't be anything but speculative and hopeful.

That's a good shout, but would it be wasting the broker's time as I'm just using them for advice for at least 6 months? I don't want to take their time up looking over 3 long paper credit files when there is zero chance of my business coming their way.